1. Fashion Bags incurs these costs for the month:

Research costs 53 000 Leather material used $5 000 Depreciation on production equipment $1 000 Shipping costs for goods shipped to a customer 5 200 Repairs and maintenance on office building 51 500 Glue, pins, threads 5 300 Wages for assembly line workers 56 000 Commissions paid to salespeople $1 800